Yeah. We have friends who have paid off their mortgage but we can’t figure out what mystical unicorn did that for them. Meanwhile, we’ve “owned” our house for 6 years and we may actually owe more now than we did when wes tarted. :/
Well, my bank refused to set a timespan that could imply a possible death-before-due date. They made sure they’ll get all the money I owe them before I croak.
But if you know you’ll pay beyond death what’s there to worry about? just reduce the rates as far as you can and look at it as rent. Why bother what the bank will do with the house after you died?
The part I like is where you pay all of the interest FIRST, then you get to actually pay on the loan. Which as you’ve pointed out, is WAYYYY after you’re dead and gone.
So the bank is like “Oh, alright. You’ve begged long enough. Here’s the loan. . .now pay us all this “other” money first, and when you’re about to die, you still owe us all the money you actually borrowed. Oh, wait…you’re dead? Hmmmm, I guess the house is still ours. We’re going to re-sell it again. And again, and again, and again! MUAHH-HA HA HA HA HA HA HAAAAAAA! SUCKER!”
That’s just becaue banks are not in the renting business: They leave you with the illusion the house was yours.
But on the other hand, if they rented you that house right away you weren’t allowed to tear down walls or mount new ones or whatever.
15 year loans. Pay extra each month. Easy enough to do with the right house. Pay ’em off in 8 years. Used cars you buy for cash, and mostly fix yourself. It’s amazing how quickly your bank account fluffs up if you have no debt. My wife calls it the “no children dividend”. That’s the real secret. Children will keep you in debtors prison.
I agree with this guy. Always pay as much as you are able on any outstanding debts, specifically because they cover interest first – if you only pay the minimum, you’ll only be covering interest and the principle will only whittle away slowly. By overpaying, you knock down the principal faster – which also reduces the portion going to interest thereby increasing the portion covering principal, meaning the payback is self-accelerating. Interest-only payback of oversized debts was a substantial factor in the Recession, because somehow people didn’t realize it was an incredibly terrible idea.
Yes, but where would we all be if all of our parents wanted the “no children dividend”? Every time you make a payment you own a little more of your home debt free. Start at one end and keep paying until you have worked your way all the way to the other end.
We should all do like those meters they “fill” with a marker at fund raisers.
You start to paint your house, but only what you own.
Every time you make a payment you can make another swipe with the brush!
[Fake edit; Just thought of this! Have a fund raiser to pay off your house!]
I laughed at the joke about Mortgage meaning that. Then i thought about the word. And that Mort actually IS a french affix meaning death. And then I googled. Dammit Adam, stop making me have depressing revelations about my adulthood…
Here in Winnipeg it’s cheaper to pay a mortgage on a 3 bedroom house then it is to rent a 2 bedroom apartment. At least with the house you have the ability to sell it and get something out of it when you’re done.
Well, now town is creeping closer and closer over the years and the real estate developers are starting to sniff around.
My land value has doubled in the last 7 years – and I still owe half my original mortgage.
If I was motivated [I’m not] I could sell this place, pay off the remainder of the mortgage and buy an equivalent house for free – with some cash to spare.
Oh my god…so true. Especially where I live. You could do wonderful things with all the money you need to get for a house here…
something tells me/us that you buying-not really- a house for yourself
I love the Idea of Bug going to a bank and saying ” Please? I promise not to combust it or any babies!” To the nearest teller.
This becomes hilarious 3 strips later
Yeah. We have friends who have paid off their mortgage but we can’t figure out what mystical unicorn did that for them. Meanwhile, we’ve “owned” our house for 6 years and we may actually owe more now than we did when wes tarted. :/
Is Wes your husband?
And did he need to see a doctor about his tarting problem?
🙂
Did anybody else read the second panel like Heath Ledger’s Joker laugh?
Totally. 😀
Mark Hamill for me.
Well, my bank refused to set a timespan that could imply a possible death-before-due date. They made sure they’ll get all the money I owe them before I croak.
But if you know you’ll pay beyond death what’s there to worry about? just reduce the rates as far as you can and look at it as rent. Why bother what the bank will do with the house after you died?
It IS possible to buy a house in cash, without a mortgage. All you have to do is define “house” very generously.
Like, a tent. That’s a house. Or a cardboard box.
Or a hole in the ground covered by a bit of torn canvas.
But that hole costs money and they will chase you out if not paid for and especially the protection fees … errr I mean Taxes.
The part I like is where you pay all of the interest FIRST, then you get to actually pay on the loan. Which as you’ve pointed out, is WAYYYY after you’re dead and gone.
So the bank is like “Oh, alright. You’ve begged long enough. Here’s the loan. . .now pay us all this “other” money first, and when you’re about to die, you still owe us all the money you actually borrowed. Oh, wait…you’re dead? Hmmmm, I guess the house is still ours. We’re going to re-sell it again. And again, and again, and again! MUAHH-HA HA HA HA HA HA HAAAAAAA! SUCKER!”
That’s just becaue banks are not in the renting business: They leave you with the illusion the house was yours.
But on the other hand, if they rented you that house right away you weren’t allowed to tear down walls or mount new ones or whatever.
15 year loans. Pay extra each month. Easy enough to do with the right house. Pay ’em off in 8 years. Used cars you buy for cash, and mostly fix yourself. It’s amazing how quickly your bank account fluffs up if you have no debt. My wife calls it the “no children dividend”. That’s the real secret. Children will keep you in debtors prison.
I agree with this guy. Always pay as much as you are able on any outstanding debts, specifically because they cover interest first – if you only pay the minimum, you’ll only be covering interest and the principle will only whittle away slowly. By overpaying, you knock down the principal faster – which also reduces the portion going to interest thereby increasing the portion covering principal, meaning the payback is self-accelerating. Interest-only payback of oversized debts was a substantial factor in the Recession, because somehow people didn’t realize it was an incredibly terrible idea.
Yes, but where would we all be if all of our parents wanted the “no children dividend”? Every time you make a payment you own a little more of your home debt free. Start at one end and keep paying until you have worked your way all the way to the other end.
I like this plan.
We should all do like those meters they “fill” with a marker at fund raisers.
You start to paint your house, but only what you own.
Every time you make a payment you can make another swipe with the brush!
[Fake edit; Just thought of this! Have a fund raiser to pay off your house!]
I laughed at the joke about Mortgage meaning that. Then i thought about the word. And that Mort actually IS a french affix meaning death. And then I googled. Dammit Adam, stop making me have depressing revelations about my adulthood…
Cheryl Wheeler said they got their mortgage from Fleet Bank, which, as far as she could tell, was the same company that makes the enemas.
“We’re the bank… We’re not your friend….”
https://www.youtube.com/watch?v=om2RqFjtUQU
Here in Winnipeg it’s cheaper to pay a mortgage on a 3 bedroom house then it is to rent a 2 bedroom apartment. At least with the house you have the ability to sell it and get something out of it when you’re done.
When I bought my house I was out in the boonies.
Well, now town is creeping closer and closer over the years and the real estate developers are starting to sniff around.
My land value has doubled in the last 7 years – and I still owe half my original mortgage.
If I was motivated [I’m not] I could sell this place, pay off the remainder of the mortgage and buy an equivalent house for free – with some cash to spare.
Huh… suddenly my motivations are rising.
If you don’t pay off your mortgage while you are alive, then does that mean that anyone with a paid off mortgage is undead?
Well I suppose it’s better than the alternative. Live with your parents till they die.
Still better than the alternative, though noisier you don’t have to deal with as much stench or flies.
Favorite comic you ever drew.
Thanks!